FOMC Minutes Loom Over Bitcoin Price as Institutional Demand Returns

Bitcoin's price has been edging lower towards the 50-day Exponential Moving Average (EMA) at $64,370 after a 2.9% gain over the previous two days. This recovery is supported by renewed institutional demand, with spot ETFs accumulating inflows of $189.30 million on Tuesday, marking the second consecutive day of inflows this week.

The upcoming release of the Federal Open Market Committee (FOMC) Minutes could provide fresh clues on the Federal Reserve's interest-rate outlook amid rising energy prices and inflation concerns. According to Bitunix Analyst Dean Chen, today's FOMC minutes 'could be critical for Bitcoin because the key issue is not simply whether the Fed hikes or holds, but how it frames the future path of rates and financial conditions.'

Chen added that a more hawkish signal could push Treasury yields and the US Dollar higher, putting additional pressure on high-beta assets. Conversely, if the Fed Minutes signal that further tightening is unnecessary, it could support a valuation recovery in crypto.